States must use the funds to make loans to support grocery stores in underserved communities, including for opening a store (excluding new construction), supporting or purchasing an existing store, or supporting a store located in a community that would be underserved without the store.
States may only make loans for grocery stores that meet requirements related to:
emphasizing unprocessed, healthful foods;
providing staple foods and a variety of raw fruits and vegetables;
having a plan to keep the foods in stock;
charging prices at or below market averages;
meeting specified matching requirements using nonfederal funds; and
being qualified to operate a store or having partnerships with organizations that provide technical assistance.
States must prioritize loan applications from entities that meet criteria related to:
hiring workers from the underserved community,
providing classes or educational information about a healthful diet,
sourcing food from local urban farms and gardens,
not selling alcohol or tobacco products, or
demonstrating existing supply chain relationships in the grocery industry.